Hays, the recruitment agency reports a slowdown in their UK business.
Hays the recruitment agency are reporting a slowdown in their business in the UK and Ireland of around 10%
It's not good reading for all recruitment agencies in the UK to hear that Hays have reported a 10% fall in operating profits to just short of £140 million in the year to June this year. Alongside this the recruitment agency has reduced it's headcount by 7% so far, that's some 400 jobs and the prediction is that it will have to reduce it's headcount further this year. To date, the losses in headcount have been natural attrition without the need for redundancies. Whether they can continue to contract in this way remains to be seen.
A large portion of the loss in business relates to the construction sector which represents one quarter of all recruitment business. The fall of the housing market has had an knock on effect on recruitment sectors related to this.
City jobs are also said to be feeling the credit crunch which is another arm of the Hays business. The recruitment agency has now brought in Alistair Cox, the group chief executive to take charge and turn the business around.
